Course Code: NRM 357
Course Title: FOREST BUSINESS MANAGEMENT
Credit Hours: 2(2+0)
Full Marks:50
Theory :50
practical:0
Objectives
The course objective is to provide a basic knowledge on Forest Business Management with main focus on:
Typology of economic systems Management Theory, Management cycle, Management levels in Forestry
Business, Normative Management, Strategic Management, Entrepreneurial thinking and decision –
making in the production and industrial sectors of forestry science.
Syllabus
Factors of production, basics of production decision ,production relations, planning methods of firm,
objectives of management ,course of action , cost concept and decision making, taxes and subsidies, profit
maximizing treatment of time ,accounting and economic costs, forest enterprises, cost benefit analysis,
risk and uncertainty in forest investment, financial analysis , economic analysis
linear programming
(graphical and simplex) multicriteria evaluation methods , marketing of forest products.
In practical the students will be taught about different aspects of forest business management as well as
the principle and methods of preparing forest business plan.
Course Breakdown
Theory
SN
Topic
1
Characteristics of a Business : Primary factors of production, size of production
unit , decision making ,changes in prices, standardization of practices and
products, turnover, financing, fixed and variable costs
Business Environment : Inelastic and elastic demand, time rigidities in
consumption of forest products, changing economic environment and farming
importance of knowledge in business, management learning and adjustment,
requirements in business profession
Multicriteria Evaluation (MCE) Methods: Introduction Assessment of cost Benefit
analysis ,use of MCE, classification of MCE methods step in application of MCE
Plan, planning , Programme and Project: Project characteristics, source of project
,project cycle ,project preparation, technical, financial and economic analysis ,
appraisal financing and investment & design, project implementation
Marketing for Forest Product : Determination of demand for forest products,
level of income ,population, end market indicator, availability and substitutes
,taste and preferences measuring elasticity of forest product demand, price
elasticity of demand, derived demand by a firm, approaches to marketing
Planning in Forestry: Concept of planning scope of planning, tiers of planning in
forestry , planning process, plan structures
Linear programming (Graphical and simplex with Duality ): Graphical solution
,use of linear programming model in determining optimal production mix for
increasing farm income.
2
3
4
5
6
7
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PU B.Sc. Forestry Curriculum
No of
Lectures
2
2
3
3
2
2
3
8
Forecasting Parameters of Firm (input, output & products ) Concept forecasting
process techniques, fundamentals of forecasting, statistics and graphs
Risk and Uncertainty in Forest Investment : Risk management, decision making
with uncertainty, concept, terminology, differences between risk and uncertainty
,sources of risk, rational decision and criterion, men expected value
Investment Decision : Net present value, logic of using NPV in selecting Projects,
Example of using NPV Internal rate of return, Calculation of IRR, benefit cost ratio
,calculation of B/C ratio, selection of investment projects
Planning, Writing and Completing Reports and Proposals: Planning reports and
proposals writing reports and proposals ,completing reports and proposals
Managing New Ventures and Entrepreneurship : The nature of entrepreneurship
its role in society , entrepreneurial organizations structure of entrepreneurial
organizations, the preference of entrepreneurial organizations.
Total
9
10
11
12
1
3
3
2
2
28
Books and References
1.
2.
3.
4.
5.
Griffin R.W. Management 8th edition , Biztantra.
Bovee C.L Thill J.V and Chaturvedi, M. Business Communucation Today Ninth Edition
Colin Price,The Theory and Application of Forest Economics, Basil Blackwell ,Oxford.
S.S Johl and T.R Kapur, Fundamentals of Farm Business Management Kalyan Publishers.
Bram Filius, Economic Aspects of Trees and Forests in Tropical Landuse.
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PU B.Sc. Forestry Curriculum